Feebate consultation announced

Associate minister of transport Julie Anne Genter announced and opened consultation on a ‘Clean Car Plan’ on July 9 that will see high emitting vehicles charged up to $3000 to enter the fleet – and offering up to an $8000 bonus on lower emitters.

For new or near-new plug-in cars, battery electrics would receive an $8000 rebate, plug-in hybrids $6800 and hybrids $4800.

No vehicles over $80,000 would receive a discount – locking out many EVs currently on offer.

While the highest penalty for a new vehicle is $3000, used import cars would sit on a different scale – with a maximum fee of $1500, and a maximum discount of $2600.

“The cars, utes and vans we use every day are also the fastest growing source of harmful climate pollution and account for nearly 70% of our transport emissions,” says Genter.

“Most Kiwis want to buy a car that’s good for the environment, but tell us the upfront cost and limited choice makes it a challenge.

“This is about making cleaner cars a realistic choice for more New Zealanders – by reducing the upfront cost of electric, hybrid and fuel efficient vehicles when sold in New Zealand for the first time,” Genter says.

“Discounts will be financed in the fairest way possibly – by putting a small fee on the highest polluting vehicles when they’re sold in New Zealand for the first time. This means people will still have choice, while contributing to the task of cleaning up the vehicles coming into New Zealand.”

The plan could sit alongside a corporate average full economy style system that would require distributors, or used car traders, to ensure the balance of vehicles they sell each year fits a C02 average of 105 grams per km, down from the country’s current 180 gram average.

If they fail to do so, they could face stiff monetary penalties: $50 per gram per vehicle per year for used imports, $1000 per gram per vehicle per year for used imports.

C02 outputs would be weighted to mitigate the fact that larger vehicles generally emit more. Under the weighting a 150 gram ute could be rated at 141 grams instead, while a very light car could see its rate rise.

Distributors and importers could group to balance their C02 levels – for example; the Giltrap Group could partner one of its supercar brands with a brand that predominately imports small or electric cars. New car distributors could also essentially ‘borrow’ future emissions cuts, a way of recognising steps in technology are made every five to 10 years.

Years where the company undercuts the average could also be banked for future years.

Distributors and used vehicle traders will be supplied an online tool to assist in calculating their levels; they will be required to submit data on the fleet the sold each year to the NZ Transport Agency for verification.

The report notes the import market should be able to hit the target as the Japanese light fleet has sat at the same level since 2014, more than a decade before implementation.

While utes make up the bulk of the new vehicle fleet, the government appears convinced this will mitigate itself over time – noting quotes from Toyota that it will be ‘electrifying’ every model by 2025, and that Great Wall is set to launch an electric ute in New Zealand.

The new rules will only apply to light vehicles, with a maximum tare of 3500kg.

The system could be implemented from 2021, either staged, with a lowering limit until 105 grams in 2025 or applying to a percentage of the distributor or importers fleet.

The full discussion document can be found HERE. The consultation runs for six weeks.

Support has come from those involved in the industry.

“These proposals are positive steps, offering support and encouragement for the uptake of EVs and the move towards de-carbonisation of the national fleet,” Mercury chief executive Fraser Whineray says.

Vector also backs it.

The Energy Efficiency and Conservation Authority (EECA) welcomes the move, saying it could be a major step for the transport sector and for transitioning New Zealand to a low-carbon economy.

Toyota New Zealand says it’s an encouraging step towards reducing New Zealand’s automotive carbon emissions, while the Motor Industry Association (MIA) says it welcomes sensible discussions on ways to make vehicles cleaner and greener.